Some American parents are 'tightening their belts' to send their kids back to school

　　China News Service, July 26th. Although inflation has eroded the purchasing power of many American consumers, retailers expect record sales this school season as families prepare for their children to return to school. new highs.

However, while wealthier households will also spend more in the face of higher prices, lower- and middle-income households are struggling to cope with spending on school supplies, consumer and retail analysts said.

　　The National Retail Federation (NRF) estimates that U.S. shoppers will spend $37 billion this back-to-school season, matching last year's record and spending an average of $864 per household, NBC reported.

Consumers expected to spend more than $500 on school-related purchases this year as inflation hit a four-year high of 9.1 percent, a poll by global decision intelligence firm Morning Consult found in May and June of this year. The proportion will soar to 25% from 7% last year.

　　But the purchasing power of some of those consumers has declined even faster.

Wealthy shoppers still have the means to spend above inflation, while the less affluent are struggling to afford higher prices, NRF data shows.

High-income households have largely driven the expected increase in back-to-school spending this year.

Households whose budgets are not affected by inflation will spend about 32% more on school-related purchases than in 2021, according to a report last week from commercial real estate services firm JLL.

　　Among low- and middle-income households, the outlook is less clear.

Households whose budgets are hit hard by inflation will spend 15% less on back-to-school shopping than last year, while households more affected by inflation will spend about 6% less, according to JLL.

　　The back-to-school season comes at a time when the cost of living for middle-income consumers has seen the most dramatic increase of the past year, while lower-income consumers face fewer high-priced options, according to research from Wells Fargo. .

The federal government's stimulus spending and expansion of the Child Tax Credit, which expires in late 2021, helped low-income people save, pay down debt and boost their net worth to record levels last fall.

But that growth has begun to be offset by inflation, which has also outpaced wage growth.

　　Still, the NRF data shows that less affluent households increase rather than cut spending at the start of school, but they "tighten their belts" more elsewhere.

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